Client

A private manufacturer of Wood Products.

Needs

After founding the company and building it for 24 years, our client wanted to spend more time with his family. However, he did not want to exit completely, as he still enjoyed his customer relationships.

Our client wanted to make sure the company he built continued as a going concern and key employees retained their positions.

Solution

Our client hired BlueWater Partners to act as its exclusive financial advisor and pursue a sale of the company to a qualified, professional manager.

Met with our client and key personnel individually to understand their needs and desired outcomes, and developed a scenario that satisfied our client’s wishes for him and his personnel.

Conducted a comprehensive assessment of our client’s business strengths, weaknesses, opportunities and threats. Developed a set of criteria for the ideal successor to the founder.

Developed a detailed Offering Memorandum and executed a marketing plan against a targeted list of buyers located throughout the Midwest.

Client

A private Technology company.

Needs

Our client needed to raise capital to meet working capital requirements and fund ongoing product development and capital expenditures.

One of the three shareholders filed suits against the corporation and its shareholders in an attempt to either gain control or exit his position and recoup his investment. Legal expenses soared and communication broke down. The ensuing conflict derailed previous attempts to raise equity through private placements.

Solution

Our client hired BlueWater Partners to act as its exclusive financial advisor and pursue a sale of all or part of the company to a qualified strategic buyer.

Met with each shareholder individually to understand his or her needs and desired outcomes, and developed a process that preserved each shareholder’s interests.

Conducted a comprehensive assessment of our client’s business strengths, weaknesses, opportunities and threats.

Developed and executed a marketing plan aimed at a targeted group of strategic buyers located throughout the U.S.

Result

Our client was acquired by a strategic buyer at a valuation greater than 25 times historic peak revenues.

Terms included cash and stock. The dissident shareholder recouped his capital contribution, while the other shareholders remain employees of the company, hold stock in the acquiring company and retain the opportunity to realize further value appreciation (the acquiring company anticipates a liquidity event in 3-5 years).

Client

Injection Molded Plastics Manufacturer

After being put on probation by customers and asked to meet weekly by its senior lender, the executive management team of a plastic processing company engaged BlueWater Partners Turnaround Consulting. With our help, the company started generating positive cash flow, strengthened its balance sheet, and improved its operations. The key to success? A comprehensive performance improvement plan. As a result, the company made its first profit in two years while making sustainable changes to its culture and processes.

Client

Commercial Printing

A commercial printing company engaged BlueWater Partners Turnaround Consulting to help improve its cash flow and strengthen its balance sheet. In just 8 months, we met our goals. Moreover, the company’s senior lender returned the relationship to commercial banking from special assets.

Client

Construction and Mining Machinery and Equipment Distributor

After its senior lender sent default letters and made it clear it wanted to exit the relationship, the shareholders of a family owned aftermarket construction and mining machinery parts distributor engaged BlueWater Partners Turnaround Consulting to advise on alternatives, including a sale to a supplier or liquidation. In the end, we worked with the lender and supplier to negotiate a loan participation agreement, which gave our client time to turnaround its operations, the bank an exit plan, and the supplier an opportunity to help save one of its major customers. The keys to success in this case?A comprehensive review of the company’s alternatives, a well developed understanding of each stakeholder’s interests, facilitation of wider and more inclusive communications, and BlueWater’s passion for creative solutions.

Problem

The recession eliminated the company’s earnings and weakened its already overleveraged balance sheet

Global production capacity contracted and credit terms tightened, leaving the company with inadequate inventory to meet customer demand as the economy started to recover

Lack of earnings, a weak balance sheet and tougher underwriting standards made refinancing highly unlikely and liquidation the most obvious next step

As is often the case, the company’s largest unsecured creditor was also its largest supplier

The company and the supplier had negotiated for 6 months, but were unable to agree on a payment plan to reduce the supplier’s exposure or the structure of a joint venture

The fourth generation of the founding family demanded that they remain in control of the company should it continue operations

Solution

Prepare a valuation opinion and analyze the company’s balance sheet for undervalued assets and short-term liabilities that could be restructured as long-term debt

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